Your Right To Manage Make Sure You Get Things Right - LawYour Right To Manage ' Make Sure You Get Things Right by Tim Bishop
in Law (submitted 2011-05-03)
The right to manage is a process becoming more frequently utilised by leaseholders whom are unhappy with the current maintenance on their block of flats or building. The right to manage allows leaseholders to successfully take control over their building and run it in a way which they believe is the most productive. The legal process in itself is relatively simple, however you will have to ensure that you follow it correctly in often this involves setting up a special right to manage company (or RTM company).
To start with you need to look at the Leasehold Reform Act 2002 and the criteria contained within this. You need to be able to satisfy this criterion in order to move forward with the process. Within the Act there are 6 different steps to satisfy; if you are rejected on one of these points it is probable that you will be unable to manage your block or building.
Some of this major criterion is denoted in the term 'qualifying tenant'. You must be a qualifying tenant to exercise your right to manage. The original lease must have been given by the landlord for at least 21 years in order to satisfy the test of a qualifying tenant. However there is a caveat to this, in that if 2/3rds of the tenants whom are interested in the right to manage have these longer leases they you are all still able to form a right to manage company.
Unfortunately once you satisfy the criteria the pressure does not stop there. You must also follow the correct legal procedure, step by step. There is a formal legal procedure for creating a company and this is what you must do for your right to manage company. You will have to notify Companies House of its existence and add on the other qualifying tenants as Directors or members, however you so chose.
At this point you must officially notify the landlord that you are planning on exercising this right to manage and that you are creating a right to manage company. This will then lead to a possible counter notice from your landlord saying how you are unable to do this. As you can imagine, this makes the whole process a lot more complicated.
Commonly people use a specialist right to manage solicitor in order to help establish their qualifying criteria and follow the correct legal process. It might be the case that your landlord has no right to reject your proposal to exercise your right to manage, however you will not know this without the help of an experienced lawyer.